The company expects to reinvest proceeds in excess of debt repayments into its other business units, including the utility operations’ $1.5 billion, five-year capital expenditure program
BISMARCK, North Dakota – MDU Resources Group, Inc. announced today that it has finalized the sale of its last marketed oil and natural gas production property.
This completes the sale of the oil and natural gas assets marketed by subsidiary Fidelity Exploration & Production Company. Fidelity’s offices, headquartered in Denver, are expected to be closed by mid-year.
Since late 2015, MDU Resources has sold its oil and natural gas production and lease assets under several agreements, including its Bakken assets in North Dakota; its Baker and Bowdoin assets, primarily in Montana; its Powder River Basin assets in Wyoming; its Greater Gulf Coast assets, primarily in Texas; its Cedar Creek Anticline assets in Montana; and its Paradox Basin assets in Utah.
“This completes the final sale of our Fidelity properties,” said David L. Goodin, president and CEO of MDU Resources. “Exiting the E&P business lowers our risk profile, and it allows us to focus more on growing our other business operations.”
The company, in aggregate, recognized proceeds and tax benefits of approximately $500 million from the oil and natural gas asset sales. MDU Resources is using the proceeds primarily to repay debt associated with Fidelity.
The company expects to reinvest proceeds in excess of debt repayments into its other business units, including the utility operations’ $1.5 billion, five-year capital expenditure program.